ITEM TITLE:
title
#24-21 - Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for Tract T Harbor 2014 Subdivision to Silver Bay Seafoods-Valdez, LLC
body
SUBMITTED BY: Nicole LeRoy, Planner
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
rec
Approve Resolution 24-21 Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for Tract T Harbor 2014 Subdivision to Silver Bay Seafoods-Valdez, LLC
end
SUMMARY STATEMENT:
In February 2013, the City of Valdez entered into a lease with Peter Pan Seafoods, Inc. for Tract T South Harbor 2014 Subdivision. This lease was amended in 2014 to extend the term of the agreement commencing September 15, 2014, and ending the last day of June 2039.
Representatives from Silver Bay Seafoods-Valdez, LLC approached staff with the request to assign and assume all the lease agreements held by Peter Pan Seafoods Company, LLC prior to closing of a sale agreement with the company.
The property is being leased for the construction, operation, and maintenance of a fish oil plant (see attached lease agreement and amendments.) Section 5.02 of the lease agreement requires the lessee to develop a fish oil plant. Construction of this facility was intended to begin in 2015, however, the property remains undeveloped. Silver Bay Seafoods-Valdez, LLC desires to amend the lease of the property for parking and accessory storage associated with the neighboring fish processing plant facilities.
This lease agreement is subject to reappraisal every five years for the purpose of adjusting the rent amount. The last time the property was appraised was in 2022, it was valued at $140,000.00. Lessee currently pays 10% of the appraised value for the property annually.
If approved, staff will work with Silver Bay Seafoods-Valdez, LLC and the City Attorney to execute assignment documents transferring the lease holder int...
Click here for full text